Today Upside Editor Richard Moroney recommends a new addition to his growth
portfolio.
“Valmont Industries, Inc. (VMI, NYSE) has two primary growth engines. The
company’s irrigation business (25% of 2012 revenue) is benefiting from high farm
income in North America, as farmers upgrade to more efficient watering equipment.
Valmont’s utility business (29%), which makes concrete structures for the electric
utility industry, is benefiting from robust demand for improved power transmission
and distribution. The stock earns an Overall score of 97.
“March-quarter earnings per share were $2.77, up 41% and $0.25 above the
consensus. Revenue increased 14%, fueled by a 25% increase in the utility and
irrigation businesses. Sales and earnings growth should benefit from favorable
pricing and robust demand in key markets, while improved cost containment should
boost profit margins. For 2013, the per-share consensus estimate is $10.66, up
from $9.56 three months ago, implying 22% growth. Valmont, which announced an
11.1% dividend increase on April 30, is being initiated as a Buy.”
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, 5/6/13